SINGAPORE (Feb 4): The Intellectual Property Office of Singapore (IPOS) and Singapore Exchange (SGX) have partnered to launch a programme that aims to raise awareness and encourage companies to undergo intangible assets (IA) evaluations.
In a joint statement on Tuesday, both IPOS and SGX reported that the Intangible Disclosure Evaluation and Audit Scheme (IDEAS) programme seeks to promote IA disclosures, and is exclusively for SGX-listed companies and companies preparing for a listing.
The IDEAS programme provides companies with government support to undergo an IA evaluation and audit process, which will enable companies to identify important information that are key drivers for their businesses, as well as make recommendations on disclosing such information to communicate business value to the market.
Despite leading global technology companies investing heavily into IA to remain competitive, empirical evidence reveals that important IA information is often omitted from financial and stakeholder reports due to the use of traditional accounting practices developed for a production-based economy.
“Greater transparency and clarity in IA disclosures will help companies build investor trust and enhance the effectiveness of the Singapore capital market in helping IA-rich businesses raise capital, as the knowledge economy shifts away from the traditional indicators of performance grounded in tangible asset values,” say IPOS and SGX.
“This [programme] will help investors better appreciate the value of intangible assets, and support companies in capital raising,” the companies add.
IDEAS will run as a pilot programme until the end of the year. During this period, companies will be nominated by IPOS and SGX to participate in the programme and will receive IPOS’ support to undergo an evaluation to identify key IA information that could be better disclosed to their stakeholders.
SGX-listed REVEZ Corporation Ltd and Hyphens Pharma International Limited, as well as industrial equipment supplier Memiontec, which is currently preparing for its listing, are some of the companies already confirmed to join the programme.
“Technologies, brands, ideas, data, know-hows and other forms of IA are the primary forces making the world’s most innovative and valuable enterprises. Yet, market understanding of IA, including intellectual property, remains a big challenge to investors and enterprises alike,” says group director of policy and engagement at IPOS Bernard Ong.
“IDEAS will enable investors to make sharper investment decisions while helping IA rich companies unleash their real enterprise value. IPOS is delighted to partner with SGX to nurture and grow the next frontier of innovative enterprises for Singapore,” adds Ong.
